06-06-2025
Manteca man pleads guilty to embezzling $1.4 million from Modesto employer
A Manteca man who worked as an IT director for a Modesto-based fuel company pleaded guilty Monday to embezzling more than $1.4 million from his employer over nearly six years, federal prosecutors said.
Justin Alexander Payne, 50, admitted to one count of wire fraud in U.S. District Court in Sacramento, according to Acting U.S. Attorney Michele Beckwith.
Prosecutors said Payne worked for a family-owned, Modesto-based fuel supplier, distributor and retailer from December 2017 to September 2023. The company was not named in court records.
During the time of his employment, Payne used a company-issued credit card to make thousands of unauthorized purchases of retail gift cards and personal items, including clothing, sports equipment and home improvement products.
To convert the gift cards into cash, Payne sold them to online businesses that specialize in reselling unwanted cards at discounted values. Investigators said those businesses processed more than 3,700 gift card transactions connected to Payne, followed by payouts to him.
Federal prosecutors said Payne tried to conceal his actions by falsifying receipts and expense reports to make the purchases appear as if they were for legitimate IT equipment.
The case was investigated by the FBI and the Modesto Police Department. Assistant U.S. Attorney Whitnee Goins is prosecuting.
Payne is scheduled to be sentenced by Chief U.S. District Judge Troy L. Nunley on Oct. 16. He faces a maximum penalty of 20 years in prison and a $250,000 fine, though the actual sentence will be determined by the court in accordance with federal sentencing guidelines.
